To impose taxes on mining cryptocurrencies is meaningless, said the head of RAKIB

© RIA Novosti / Evgeny to Betemporary in fotoracconti with the logo of the cryptocurrency bitcoin. Archive photoTo impose taxes on mining cryptocurrencies is meaningless, said the head of RAKIB© RIA Novosti / Evgeny to Betemporary the image Bank

To impose taxes on mining cryptocurrency is pointless, it would be similar to the taxation of the Internet, the President of the Russian Association of cryptocurrency and blockchain (RAKIB) Yuri Pripachkin.

«Because trying to tax mining is the same thing that nalogooblozenie the Internet network. The task of the miners — maintaining blockchain network. The fact that they are in support of health earn some awards, in the primary stage as a currency that they create, does not have any economic component, but there isn’t any economic basis in Fiat currencies (currencies whose value is guaranteed by the government — ed.). They receive a set of mathematical numbers», — he told RIA Novosti on the sidelines of the world summit of the blockchain and cryptocurrency, organized by the International Association of decentralized cryptocurrencies and blockchain (IDACB).

According to him, the tax can only convert cryptocurrencies into Fiat money. «What tax is, however, unknown. Belarus, for example, said that she nalogooblozheny never will, because she understands that there are artificial benefits for the state, ranging from jobs, skills that do not emerge and expand,» said Pripachkin.

«The idea to tax mining is not welcome nor community, nor common sense,» he added.

In a Friday newspaper «Vedomosti» with reference to the concept of regulation of mining from the Ministry of communications of the Russian Federation said that the Agency plans to allow mining to citizens and businesses and to provide miners of the quota of electricity and a special rate, to identify them will be the bills for electricity.

It is expected that there will be a special detection system miners — the structure of consumption of current Internet traffic in order to correlate the capacity of mining equipment with the amount crypto miner declare on the crypto currency exchange. For a start, miners wait two years tax holidays, the continuance of which they will be required to maintain accounting records; after a vacation of a legal entity will pay income tax and VAT — will not be; what the tax will pay private miners, the concept is not said. The concept is not accepted until February 1, it will finalize and send to the government.